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IAI Actuarial Core Principles · Business Management · Strategy, competitive advantage, strategic decision process and PEST analysis

Which statement best distinguishes a deliberate strategy from an emergent strategy, as the terms are used when studying the meaning of strategy?

A deliberate strategy is carried out as originally intended, whereas an emergent strategy forms gradually from a pattern of actions and responses that were not fully planned beforehand. The distinction concerns how the strategy comes about, not its level, author or success.

  1. AA deliberate strategy is always written in the annual report, while an emergent strategy never is
  2. BA deliberate strategy is pursued as originally planned, while an emergent strategy develops from a pattern of decisions and actions over time without being fully planned in advanceCorrect
  3. CA deliberate strategy applies only to corporate level, while an emergent strategy applies only to functional level
  4. DA deliberate strategy is imposed by regulators, while an emergent strategy is chosen by shareholders
  5. A deliberate strategy is always successful, while an emergent strategy always fails

Explanation

Deliberate strategy is the intended plan that is realised as designed. Emergent strategy arises from a stream of actions and responses to events, forming a pattern that was not fully planned. The distinction is not about level, regulator imposition or success.

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